Acceleware Ltd. Reports First Quarter 2025 Financial and Operating Results

CALGARY, Alberta, Might 22, 2025 (GLOBE NEWSWIRE) — Acceleware® Ltd. (“Acceleware” or the “Firm”) (TSX-V: AXE), a complicated electromagnetic (“EM”) heating firm with extremely scalable options for big industrial functions, as we speak introduced its monetary and working outcomes for the three months ended March 31, 2025 (all figures are in Canadian {dollars} until in any other case famous). The Firm’s merchandise are branded EM Powered Warmth and supply a pathway to economically electrify and decarbonize industrial heating processes beforehand thought-about troublesome to abate. EM Powered Warmth know-how is powered by the Firm’s proprietary Clear Tech Inverter (“CTI”) for functions together with enhanced oil restoration (“RF XL”), mining and mineral processing, carbon seize, cement and concrete, and agri-food. Along with EM Powered Warmth, the Firm additionally supplies specialised scientific high-performance (“HPC”) software program. This information launch ought to be learn along side the Firm’s unaudited interim condensed monetary statements and the accompanying notes for the three months ended March 31, 2025 and administration’s dialogue and evaluation (“MD&A”) thereto, along with the audited monetary statements for the 12 months ended December 31, 2024, notes and MD&A thereto, all of which can be found on Acceleware’s web site at http://www.acceleware.com or on http://www.sedarplus.ca.

HIGHLIGHTS

Monetary highlights:

Acceleware is piloting RF XL at its commercial-scale RF XL pilot mission at Marwayne, Alberta (the “RF XL Pilot”). The RF XL Pilot efficiently demonstrated the potential of the know-how in an operational setting. RF XL is the primary utility of the Firm’s patent-protected CTI. Performance of the CTI has been confirmed by way of scaled area checks carried out in 2019 and 2020, and over six months of operation on the RF XL Pilot. Please consult with the RF XL PILOT UPDATE part beneath for extra info, and to the MD&A for an entire RF XL Pilot replace.

Based mostly on constructive outcomes thus far, Acceleware stays assured that RF XL will turn out to be viable as a important know-how within the effort to scale back manufacturing prices and decarbonize heavy oil and oil sands manufacturing. In 2024, the Firm’s operations staff continued information evaluation, “history-matching” simulations and different analyses of operational information from checks in 2022. The evaluation supplies proof that the operation of the RF XL Pilot resulted in sustained heating of the formation across the heating nicely previous to the pause in operations for upkeep and inspection. Particularly, the Firm efficiently injected RF energy into the heating nicely for over 200 days — a major milestone and one thing that has by no means been achieved earlier than. Additionally of word is that the CTI efficiently operated for seven consecutive months at a wide range of energy ranges and working situations throughout this time.

Within the three months ended March 31, 2025, the Firm continued to work on the following iteration of the RF XL subsurface system to extra concretely handle technical points that have been illuminated through the first part of heating on the RF XL Pilot. These iterations are additionally anticipated to considerably scale back the complexity of the subsurface construction, whereas lowering manufacturing and deployment prices as soon as commercialized. This redesign work is now full and prepared for manufacturing and deployment. The Firm is searching for funding for a second part of heating on the RF XL Pilot incorporating the brand new subsurface design and current floor services together with the CTI. Throughout 2024 the Firm confirmed that the anticipated price to redeploy the upgraded design at Marwayne could be roughly $5 million together with contingency. Additionally in 2024, the Firm introduced that it had secured a complete of as much as $1.3 million in non-dilutive funding from the Clear Useful resource Innovation Community (“CRIN”) for the following part of the RF XL Pilot, contingent on the Firm sourcing the remaining $3.7 million. The Firm has recognized a number of business and authorities potential funders and has mentioned the mission with them. The aim of the second part of heating on the RF XL Pilot is to allow larger energy to be distributed into the reservoir for a sustained interval, leading to larger reservoir temperatures and oil manufacturing, to advance the potential business viability of RF XL know-how.

Along with growth work, and with outcomes gained from RF XL deployment in Marwayne thus far, Administration has additionally initiated a strategic overview of the commercialization plan for RF XL. The method concerned analyzing varied heavy oil and bitumen reservoirs in western Canada, with the objective of figuring out the optimum assets for the demonstration of economic viability of RF XL. These reservoirs included not solely the huge McMurray oil sands, but additionally heavy oil performs together with the Clearwater in north-central Alberta, the Bluesky in west-central Alberta, and the Mannville Stack in japanese Alberta and western Saskatchewan. The overview course of has led Administration to conclude that heavy oil performs supply the best near-term potential for commercializing RF XL, as a result of decrease preliminary capital per nicely, means to scale from one heating nicely to many, decrease working price to successfully lower viscosity, and the potential for important incremental manufacturing and supreme restoration to make uneconomic assets financial. As soon as confirmed in heavy oil, Administration believes the oil sands will supply important market enlargement potential.

In Q1 2025 Acceleware’s board of administrators authorised an initiative proposed by Administration to research (in parallel with continued effort to progress a second part of heating at Marwayne) the chance for Acceleware, as an operator, to amass rights to an acceptable heavy oil property, and thereafter apply RF XL as a secondary restoration methodology to enhance the property’s manufacturing, cashflow, final restoration and asset valuation. Beneath this situation, Acceleware would profit from the valuation enhancement caused by RF XL. Administration has commenced its investigation pursuant to this initiative as of the date of this information launch. Within the three months ended March 31, 2025 the Firm’s subsurface staff refined its reservoir choice standards and recognized a number of promising areas for a business demonstration of RF XL.

As of the date of this information launch, the Firm accomplished further IMII-funded testing of a 100kg per hour prototype potash dryer with additional promising outcomes. IMII and its collaborating members had requested further testing below varied eventualities earlier than contemplating the Firm’s Part 3 proposal for the design, development and testing of a brand new, larger-scale prototype. Acceleware expects to be taught if IMII and its members will sanction a Part 3 mission later this 12 months. IMII’s minerals business members embody BHP, Cameco Company, Fission Uranium Corp., The Mosaic Firm and Nutrien Ltd.

Through the three months ended March 31, 2025, Acceleware continued to spend money on creating and defending new mental property with the variety of patents issued, allowed, utilized for, or in growth totalling 62. The Firm has 28 patents granted or allowed to guard varied proprietary applied sciences and 34 patent functions pending or below growth. The Firm makes use of an built-in technique for IP safety involving a mixture of patenting and commerce secrets and techniques, working carefully with the patent workplaces and mental property advisors.

RF XL PILOT UPDATE
Acceleware plans to provoke a second part of heating after finishing a proposed important subsurface design improve to deal with the moisture ingress subject. Previous to the following part of heating, all RF XL subsurface elements will probably be eliminated, and considerably upgraded, after which redeployed. This plan was developed in session with business companions and repair suppliers and among the many options examined, it’s anticipated to have the very best likelihood of attaining larger energy injected into the reservoir for a sustained interval. The subsurface design was additional refined in Q1 2025 to extra fully handle the moisture ingress subject, to extend simplicity and to scale back prices for the business product. The refined design just isn’t anticipated to materially influence the estimated price for the second part of heating on the RF XL Pilot. An estimated further $5 million of funding is required to finish the redeployment together with contingency, and Acceleware is actively working to boost these funds. Acceleware has secured $1.3 million partial funding for the redeployment conditional on securing the stability of the funds from business companions or different sources. The ultimate timing and value of the redeployment and subsequent heating is unsure and stays primarily depending on financing, associate funding, the time required to supply the remaining financing, and the profitable deployment of repairs and elements.

Complete direct funding acquired for the primary part of the RF XL Pilot was $24.4 million and included $5.9 million from Alberta Innovates, $5.5 million from Sustainable Growth Know-how Canada (“SDTC”), $5.0 million from Emissions Discount Alberta (“ERA”), $3.0 million from CRIN and $5.0 million in mixture from three oil sands operators. See dialogue beneath in Monetary Abstract. In change for funding, the oil sands operators acquired unique entry to detailed technical information and take a look at outcomes, prioritized rights to host a subsequent take a look at, most popular pricing on pre-commercial merchandise and most popular entry to RF XL merchandise. These main oil sands producers symbolize nicely over a million barrels of oil sands and heavy oil manufacturing per day.

QUARTER IN REVIEW
Income of $431 thousand was recorded within the three months ended March 31, 2025 (“Q1 2025”) in comparison with $44 thousand within the three months ended March 31, 2024 (“Q1 2024”) and $1.9 million within the earlier quarter ended December 31, 2024 (“This autumn 2024”). Income in This autumn 2024 was considerably related to deferred income acknowledged regarding a contract with one oil sands producer for the RF XL Pilot.

Complete complete loss for Q1 2025 was $383 thousand in comparison with a complete lack of $1.0 million for Q1 2024 and complete earnings of $0.9 million for This autumn 2024. The discount in complete loss in Q1 2025 in comparison with Q1 2024 was as a result of larger income and a major discount in R&D and G&A bills. Complete earnings in This autumn 2024 was larger as a result of income associated to the RF XL Pilot. Finance expense consists of curiosity expense on convertible debentures and notes payable that are funding the Firm’s working capital. Complete earnings in all intervals was impacted by adjustments in worth of the by-product monetary devices embedded throughout the convertible debenture. The adjustments in by-product worth are pushed primarily by the fluctuation within the Firm’s share worth.

R&D bills incurred in Q1 2025 have been $421 thousand in comparison with $501 thousand in Q1 2024 and $581 thousand in This autumn 2024. R&D spending in Q1 2025 and This autumn 2024 was associated to the IMII dryer for potash ore and included lab engineering, designing and testing, information evaluation, and associate consultations, and to additional engineering on the following iteration of the RF XL Pilot. R&D spending in Q1 2024 was associated to the RF XL Pilot. There was $nil authorities help acquired in Q1 2025, This autumn 2024 and Q1 2024.

G&A bills incurred in Q1 2025 have been $253 thousand in comparison with $452 thousand in Q1 2024 and $315 thousand in This autumn 2024. There have been decrease non-cash payroll associated prices incurred in Q1 2025 because of the timing of choice grants and decrease skilled charges because the Firm continues to prioritize price management given unsure financial situations.

As at December 31, 2024, Acceleware had destructive working capital of $3.6 million (December 31, 2024 – destructive working capital of $3.4 million) together with money and money equivalents of $211 thousand (December 31, 2024 – $272 thousand). The rise in destructive working capital is attributable to the lower in money in addition to a rise briefly time period notes payable, and a rise in deferred administration compensation.

Within the pursuits of matching money necessities with a mixture of money generated from operations, exterior funding, and capital elevating actions, the Firm actively manages its money circulate and investments in new merchandise. Acceleware intends to maximise money generated from operations by way of a number of initiatives which embody persevering with to deal with larger gross margin software program merchandise which are marketed by way of a mixture of direct and reseller fashions; minimizing working bills the place potential; and limiting capital expenditures. Because the Firm continues to develop its RF Heating know-how, new R&D investments will probably be financed by way of a mixture of inside money circulate from the HPC enterprise, mission funding agreements, authorities help and exterior financing, when accessible.

ABOUT ACCELEWARE:
Acceleware is an innovator of clean-tech decarbonization applied sciences comprised of two enterprise models: Radio Frequency Heating Know-how and Seismic Imaging Software program.  

Acceleware is piloting RF XL, its patented low-cost, low-carbon manufacturing know-how for heavy oil and oil sands that’s materially completely different from any heavy oil restoration approach used as we speak. Acceleware’s imaginative and prescient is that electrification of heavy oil and oil sands manufacturing could be made potential by way of RF XL, supporting a transition to a lot cleaner power manufacturing that may rapidly bend the emissions curve downward. With clear electrical energy, Acceleware’s RF XL know-how may remove greenhouse fuel (GHG) emissions related to heavy oil and oil sands manufacturing. RF XL makes use of no water, requires no solvent, has a small bodily footprint, could be redeployed from website to website, and could be utilized to a large number of reservoir varieties. Acceleware can also be actively creating partnerships for RF heating of different industrial functions utilizing the Firm’s proprietary CTI.

Acceleware and Saa Dene Group (co-founded by Jim Boucher) have created Acceleware | Kisâstwêw to boost the profile, adoption, and worth of Acceleware applied sciences. The shared imaginative and prescient of the partnership is to enhance the environmental and financial efficiency of the power sector by supporting beliefs which are necessary to Indigenous peoples, together with respect for land, water, and clear air.

The Firm’s seismic imaging software program options are state-of-the-art for prime constancy imaging, offering essentially the most correct and superior imaging accessible for oil exploration in complicated geologies. Acceleware is a public firm listed on Canada’s TSX Enterprise Alternate below the buying and selling image “AXE”.

NOTE REGARDING FORWARD-LOOKING INFORMATION AND OTHER ADVISORIES
This information launch comprises “forward-looking info” throughout the which means of Canadian securities laws. Ahead-looking info typically means details about an issuer’s enterprise, capital, or operations which are potential in nature, and consists of disclosure in regards to the issuer’s potential monetary efficiency or monetary place. 

The forward-looking info on this press launch could be recognized by phrases resembling “believes”, “estimates”, “plans”, “potential”, and “will”, and consists of details about, the anticipated commercialization of RF XL, the anticipated price of the RF XL Pilot, the timing of the execution of the RF XL Pilot and the redeployment, anticipated financing required for the RF XL Pilot redeployment, the anticipated financial and societal advantages of the RF XL know-how, and the longer term growth plans associated to potash ore drying prototypes. Acceleware assumes that present price estimates are correct, present timelines is not going to be delayed by both inside or exterior causes, that analysis and growth effort together with the commercial-scale take a look at plans will end in commercial-ready merchandise, and that future capital elevating efforts will probably be profitable.  

Precise outcomes might range from the forward-looking info on this press launch as a result of sure materials threat components. These threat components are described intimately in Acceleware’s steady disclosure paperwork, that are filed on SEDAR at http://www.sedar.com. 

Acceleware assumes no obligation to replace or revise the forward-looking info on this press launch, until it’s required to take action below Canadian securities laws. 

This information launch doesn’t represent a proposal to promote or a solicitation of a proposal to purchase any of the securities described on this launch in the US. The securities haven’t been and won’t be registered below the US Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities legal guidelines and will not be supplied or offered inside the US or to U.S. individuals until registered below the U.S. Securities Act and relevant state securities legal guidelines or an exemption from such registration is on the market. 

DISCLAIMER

Neither the TSX Enterprise Alternate nor its Regulation Companies Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Alternate) accepts accountability for the adequacy or accuracy of this launch.

For extra info:
Geoff Clark
Tel: +1 (403) 249-9099
geoff.clark@acceleware.com

Acceleware Ltd.
435 10^th Avenue SE
Calgary, AB, T2G 0W3
Canada
Tel: +1 (403) 249-9099
http://www.acceleware.com